Despite poor economy, downtown investment reaches $9 million

Wendy Beeker recently opened the Grayshores Trading Co. in the previous location of the Literary Bookpost on South Main Street. photo by Jon C. Lakey, Salisbury Post.

Wendy Beeker recently opened the Grayshores Trading Co. in the previous location of the Literary Bookpost on South Main Street. photo by Jon C. Lakey, Salisbury Post.

Rachael Mitchell looks over a bottle of wine at Bob and Stephanie Potter's new downtown Salisbury business, the Salisbury Wine Shop. photo by Jon C. Lakey, Salisbury Post.

Bob and Stephanie Potter pose at their new downtown Salisbury business, the Salisbury Wine Shop. photo by Jon C. Lakey, Salisbury Post.

By Emily Ford

eford@salisburypost.com

Not only can Stephanie Potter advise you on pairing wine with food, she can tell you what beer to drink with grilled salmon and corn on the cob.

Founder’s Old Curmudgeon.

She knows this because she tested the funny-sounding beer with that menu last week.

Before they agree to carry a product, Stephanie and Bob Potter taste every beer and wine they sell at the new Salisbury Wine Shop, 106 S. Main St.

“It’s a tough job,” Bob Potter jokes.

About 500 people attended the grand opening for the wine and beer store, making it one of the largest openings in the history of downtown, Potter said.

That turnout, and the success of the shop after just five weeks, hint at a surprising trend borne out by recently released statistics.

On the heels of the Great Recession, downtown is thriving.

Downtown Salisbury Inc. reports that despite the current economic slowdown, investment in downtown totaled nearly $9 million during the past fiscal year.

That’s an increase of 388 percent over the previous fiscal year, thanks in large part to government spending and a new children’s theater.

More than half of the total — $4.59 million — was new public investment, mainly the large courthouse and jail expansion and municipal parking lot improvements behind City Hall and next to George’s Italian Grill & Bar on East Innes Street.

New private investment added up to $4.35 million, led by Piedmont Players Theatre, which raised $3 million to turn a pool hall into The Norvell.

Other major private renovations included the Yadkin House at East Council and North Lee streets, Literary Bookpost at 110 S. Main St. and Southern Spirit Gallery at 102 S. Main St.

“We kept the momentum going through the recession,” said Randy Hemann, executive director for Downtown Salisbury Inc.

• • •

Hemann compiles annual summaries of economic development in Salisbury’s Municipal Service District for the N.C. Main Street Center.

During an average year, downtown sees between $5 million and $6 million in investment, he said.

Despite the unusually large $9 million investment last year, downtown had a net gain of zero new businesses. Twelve opened, but 12 others left.

However, many new arrivals made significant investments.

The Potters poured $70,000 into their wine and beer business, which stocks more than 2,000 bottles of wine priced from $8.59 to $121, as well as 40 kinds of custom craft beers.

They’ll stay open late for book clubs or girls’ night out, and customers can drink in the shop and surf the Web for free.

The new business trend continues this fiscal year, with additional retailers opening their doors.

And their wallets.

Lynne Harrell said she’s invested $100,000 in the Sweetest Thing Bakery & Cake Boutique at 121 E. Innes St. Demand was so great that Harrell closed for a week in August to triple and train her staff.

At Grayshores Trading Co., a new vintage furniture and gift shop at 119 S. Main St., owner Wendy Beeker said she’s invested $40,000.

That doesn’t even count free gift wrapping.

People may remember Beeker from Las Palmas restaurant, where she tended bar from 1987 to 1993. After living in Georgia for 17 years, she returned to Salisbury in June and has been impressed.

“Salisbury has so much more of a vibrant downtown now. There is so much more going on,” she said. “People are really dedicated to shopping here and supporting it.”

So far, business has been “really good,” she said.

Grayshores, named for a road in Beeker’s New York hometown, features an eclectic mix of old and new furniture — think shabby chic — along with a variety of linens, bath products, books and home decor.

“I wasn’t going to copy anyone else, and this feels a lot different,” Beeker said. “Different is hard to sell sometimes when people aren’t used to it.”

Apparently, people were ready for different.

Watching the reaction of former residents like Beeker who return to Salisbury is one of the best parts of Hemann’s job, he said.

“They can see the growth that’s happened,” he said. “They notice that it’s different and vastly improved.”

Hemann uses two words to describe Beeker and other new downtown tenants: “quality” and “experience.”

Bob and Stephanie Potter worked at Childress Vineyards in Lexington, where he made wine and she worked in the tasting room. She’s been pairing food and wine for 30 years, since living on a vineyard in France.

Harrell has a culinary degree, and Beeker has owned and operated three retail shops.

• • •

Even with the poor economy, downtown is nearly full.

The retail vacancy rate is between 10 and 12 percent, Hemann said. The office vacancy rate is 7 or 8 percent, and residential is 5 percent.

“That is very good considering the economy. A lot of people don’t have numbers like that,” Hemann said. “You have to have strong businesses to weather what we’re going through right now.”

Hemann credits stalwart downtown anchors like Bernhardt’s Hardware, Innes Street Drug, Queen’s and the Stitchin’ Post for providing a consistent, stable presence that can launch new endeavors.

Sometimes, downtown acts as a business incubator.

At least three companies that left downtown last year moved to bigger locations in Salisbury — Habitat Restore, Havana Knights and Stout Studio Architecture.

• • •

While the city and Rowan County own the most downtown property, other significant owners include the Salisbury Post, the Wallace family, developer Lane Yates and Downtown Salisbury itself, which owns the Empire Hotel.

Downtown property holds its value because of density, Hemann said. And because downtown has been the center of commerce for more than 250 years.

“Strip centers come and go, but downtown remains,” he said.

According to Hemann’s annual report, land values in downtown remain among the highest in Rowan County at $1.02 million per taxable acre.

An acre of downtown land generates $12,110 in city and county taxes. By comparison, the value of a strip shopping center in Salisbury is around $580,000 per acre, which generates $6,873 in taxes.

Bob Potter wanted to consider a shopping center for the new wine shop, but his wife wouldn’t let him.

“Downtown is where we want to be,” Stephanie Potter said she told her husband, whom she married a week before they opened the store. “Downtown is the greatest place to have a business.”

The Potters, Harrell and Beeker all live, as well as work, downtown. Downtown now has more than 140 residences, Hemann said.

An acre of urban houses, such as those in Fulton Heights, is worth about $1 million and generates $11,944 in city and county taxes.

An acre in a suburban development, which is typically one house in a subdivision like Neel Estates, is worth about $122,000, Hemann said. It generates $726 per acre in county taxes.

A waterfront house at High Rock Lake averages $404,000 per acre and generates $2,403 in taxes, he said.

• • •

Since 1980, 313 businesses have located downtown, for a cumulative total of more than $111 million in investment over the past 30 years.

Monthly night-on-the-town events that used to attract dozens of people now attract hundreds, or even thousands.

While Hemann said he can’t match last year’s $9 million investment, he still expects downtown to do well.

He’s got several projects in the pipeline picking up steam, he said, including the First United Methodist Church expansion.

The Steinman family recently announced they will renovate the landmark Hardiman building at 131 E. Innes St. for retail and office space.

“We’re going to have a good year,” Hemann said.

[0xa0]Contact Emily Ford at 704-797-4264.

Businesses gained

Norvell Theater

Salisbury Wine Shop

Counseling office

Culture Image Reggae

Foremz Snack Shop

Koko Java

Fix It Computers

Burgess Bail Bonds

Lindsey Lee Photography

Dorothy Kirtley Realty

Mid Carolina Real Estate

Employment agency

Businesses lost

Havana Knights

Doug Jones Insurance

Habitat Restore

Wooden Stone

Club Liqwid

Kellie’s Consignment

Robar Books

Transmission shop

Gun shop

Handbag Heaven

Students in Training

Stout Studio Architecture

Source: Downtown Salisbury Inc. for fiscal year 2009-10